MORITA REPORT 2011

To Shareholders and Investors
Interim Business Report for the 79th Term
From April 1, 2011 to September 30, 2011

Securities Identiﬁcation Code: 6455

Morita Topics
Launch of ALTESIMO , a new type offire extinguisher
The Morita Group has completed development of a new type of fire
extinguisher called

ALTESIMO

as part of efforts to increase theuptake of the safer stored-pressure fire extinguisher following
reports of explosions involving aging pressurized fire extinguishers.
As the product name suggests, the body of the fire extinguisher has
been constructed with aluminum material using a weld-free methodthat prevents nitrogen gas from leaking outside. Other major
improvements include plastic PP Foot Rings

around the bottom of

the fire extinguisher to help prevent corrosion. Its overall weight is
20% to 27% lighter than a similarly shaped steel fire extinguisher
which makes it easier to handle, while a universal design makes
reading labels on the front easier. This new product has been
designed for outstanding safety and reliability under Safer&Prettier
concept. ALTESIMO will actively be marketed as the Morita Groups leading product aimed at increasing the uptake of stored-pressure
fire extinguishers.

※ The product name ALTESIMO was derived from a combination of thewords aluminum , which refers to the material used for construction, andfortissimo , which is a direction used in musical scores meaning strongest .

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Morita s Wildfire Truck Concept wins American
IDEA Award
The Wildfire Truck Concepthas

been awarded a 2011 IDEA GoldAwardーthe highest possible awardーin the Commercial and Industrial
Products category, one of the threemost prestigious design awards in the world. The Wildfire Truck Conceptthat was selected for the award is a futuristic fire truck developed by poolingthe resources of the technical development and design teams at the Morita
Group together with the aim of resolving various issues that firefightersaround the world face when battling large wildfires. The IDEA Awards
praised the concept car, stating Climb into it, drive it, use it, analyze
relevant data in it or enjoy looking at it. The Wildfire truck illustrates thepower of a bold, refined prototype to test innovative thinking by richly
probing a market space with a visceral, hands-on experience of the featuresand brand.
The Morita Group will continue developing fire trucks with outstanding
functionality and designs. Development of concept cars of the future will
include greater use of ergonomics.

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■■Miyata Cycle Announces 2012 MERIDA models

Miyata Cycle announced on October 1 the new 2012 model lineup of theMERIDA international sports bike brand. The highlights of the new model
lineup include the MERIDA JULIET sports bike series and BIG.NINEseries, which have been designed and developed for female riders, andJapanese road conditions.
With the recent boom in health-conscious activities, bikes have become anessential part of the lifestyle of students and other members of society,leading to an increased demand for unique designs. The MERIDA JULIET
series has been designed to suit the figure of Japanese women, and isavailable in a range of special colors selected by female designers. BIG.NINE
is a mountain bike with 29er that has become popular within theinternational bike racing scene.
Also released is the Miyata Branded EX Cross Street , EX Cross Lady
and TART models, which are perfect for commuting to school or work.
The market for health-conscious models for people who want to commute toschool or work in a sporty fashion will continue to be examined, with bikes
designed to suit any new upcoming needs.

BIG.NINE CORBON TEAM-D

MERIDA JULIET series CROSSWAY BREEZE TFS 200MD
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Message from the Top Management
It gives me pleasure to take this opportunity to wish all our shareholders
good health and prosperity and express our heartfelt thanks for their usual
valuable guidance.
Given below is an overview of our business results as complementary
information to our 79th term half-year financial statements.

Business Overview
In the first half of the fiscal year, we have seen the Japanese economy
gradually recover in terms of the production activities that had been in aslump following the Great East Japan Earthquake. However, our economy
still suffers from uncertainties about the future caused by the rising yen andfalling stock prices due to fiscal concerns prevailing in the United States andEurope.
In such circumstances, Morita Group has aggressively forged ahead withbusiness activities, cost reduction efforts, and new product development.
As a result, for the first half of the fiscal year, Morita Group posted sales of
20,362 million, which represent a decrease of 1,564 million yen, or 7.1%,
compared with the corresponding period in the previous year. On the otherhand, the group s operating profit increased by 338 million yen to 547
million yen (up 161.8%), ordinary profit by 304 million yen to 621 million
yen (up 96.0%), and net income to 262 million yen (against a net loss of 31million yen recorded a year ago). The improvement in income is attributableto healthy earnings posted in the Fire Protection Equipments & Systems
Business and the Bicycles Business.
Morita Group s earnings per segment are as follows (percentages inparentheses indicate year-on- year change): The Fire Fighting Vehicles
Business posted sales of 6,697 million yen (down 29.0%) and segment
income of 104 million yen (down 78.5%). The decrease is due to the fact thatin the first half of last year, we had sales generated by the fiscal 2009
supplementary budget of the national government. The Fire Protection
Equipments & Systems Business booked sales of 7,120 million yen (up20.2%) and segment income of 408 million yen (against a loss of 39 million
yen recorded a year ago). The good performance is attributable to the healthy
sales of the package-type automatic fire extinguisher

SPRINEXandM O R I TA R E P O R T 2 0 1 10402

increased demand for fire extinguishers under the revised applicable law.
The Recycling Machines Business posted sales of 1,780 million yen (up44.7%) and segment loss of 24 million yen (against a loss of 117 millionyen). The favorable performance is attributable to the increased demand
derived from the disposal of debris generated by the Great East JapanEarthquake. The Environmental Conservation Vehicles Business recorded
sales of 3,295 million yen (down 17.5%) and segment loss of 12 million yen(against income of 99 million yen). The poor performance is attributable inpart to the adverse impact on vehicle production caused by the delayeddelivery of chassis from car manufacturers as the result of the earthquake.
The Bicycle Business worked hard for expanding sales of high-value added
products and booked sales of 1,469 million yen (up 9.1%) and segment
income of 71 million yen (against a loss of 191 million yen).

Future Outlook
As described above, for the first half of the fiscal year Morita Group has
generally achieved good sales and profit thanks to the contribution by theFire Protection Equipments & Systems Business and the Bicycles Business.
On a full-year basis, we expect the group to achieve its initially projected
results. The Japanese economy will continue to be in a difficult situation notallowing any optimism, and Morita Group will dedicate itself to aggressive
business activities, cost-cutting efforts, and improvement of production
efficiency, thereby earning good revenue and profit.
In closing, I would like to ask all our shareholders for continued support andencouragement.

November 2011

Masahiro Nakajima
President

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Consolidated Summary● Consolidated Balance Sheets
Morita Holdings Corporation and Consolidated Subsidiaries
Millions of yen

FY2010First half

FY2011First half

FY2010
Full Year¥¥¥¥¥¥¥¥¥¥¥¥

AssetsCurrent assetsProperty, plant and equipment
Intangible assets
Investments and other assets
Total assets
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock, at cost
Total shareholders' equity
Accumulated other comprehensive income
Unrealized gains (losses) on available-for-sale securities
Deferred gains (losses) on hedges
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests in consolidated subsidiaries
Total net assets
Total liabilities and net assets

M O R I TA R E P O R T 2 0 1 10602

● Consolidated Statements of Income
Morita Holdings Corporation and Consolidated Subsidiaries
Millions of yen

Net sales

FY2010First half

FY2011First half

FY2010
Full Year¥¥¥

Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income
Other expenses
Income before income taxes
Income taxes
Current
Deferred−

Minority interests in earnings of consolidated subsidiaries
Net income−¥¥¥● Consolidated Statements of Cash Flows
Morita Holdings Corporation and Consolidated Subsidiaries
Millions of yen

FY2010First half

Cash flows from operating activities

FY2011First half

FY2010
Full Year¥¥¥¥¥¥

Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of period (year)

07
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Company Profile
Overview
Company name

MORITA HOLDINGS CORPORATION

Inauguration of business
Establishment
CapitalApril 23, 1907July 23, 1932

¥4,746mil

Osaka Head Office

5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka

Tokyo Head Office

3-25-31 Nishishinbashi, Minato-ku, Tokyo

Type of BusinessControl/management of business activities
of group companies, and undertaking of
indirect management operations on acommission basis

Group Companies
MORITA CORPORATION
1-5 Techno Park, Sanda-shi, Hyogo, 669-1339, Japan
Development, manufacturing and sales of ladder trucks, firetrucks and other fire trucks and specialty vehicles
MORITA BOHSAI TECH CORPORATION
Shiba256 Square Building 8F, 2-5-6 Shiba, Minato-ku, Tokyo, 105-0014, Japan
Sales of fire protection equipments focused on fire extinguishers.
Design, construction and maintenance of fire protection facilities
MORITA ENVIRONMENTAL TECH CORPORATION
1530 Konoda-cho, Funabashi-shi, Chiba, 274-0081, Japan
Design of waste recycling facilities and other waste disposal
facilities, and manufacturing and sales of large hydraulic equipment
MORITA ECONOS CORPORATION
1-48 Jinmu-cho, Yao-shi, Osaka, 581-0067, Japan
Manufacturing and sales of environment preservation vehicles
such as sanitation vehicles and garbage trucks
MORITA TECHNOS CORPORATION
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-0003, Japan
Aftercare service and maintenance of fire trucks, equipment and materials. Development,
manufacturing and sales of electronic applied machinery and information processing machinery
MIYATA INDUSTRY CO.,LTD.
1-1-1 Shimomachiya, Chigasaki-shi, Kanagawa, 253-8588, Japan
Development, manufacturing and sales of fire extinguishers,
fire fighting equipment, and fire protection-related equipment
MIYATA CYCLE CO.LTD.
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003, Japan
Development and sales of bicycles

M O R I TA R E P O R T 2 0 1 10802

MORITA SOGO SERVICE CORPORATION
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-8585, Japan
ALUVO CORPORATION
1479-1 Kamikanzo, Iwata-shi, Shizuoka, 438-0115, Japan
MORITA U.G. CORPORATION
2-3-5 Kandasuda-cho, Chiyoda-ku, Tokyo, 101-0041, Japan
MORITA ENGINEERING CORPORATION
1-48 Jinmu-cho, Yao-shi, Osaka 581-0067, Japan
HOKKAIDO MORITA CORPORATION
13-2-17 Naebo-cho, Higashi-ku, Sapporo-shi, Hokkaido, 065-0043, JapanKAGOSHIMA MORITA PUMP CORPORATION
12-32, Matsubara-cho, Kagoshima-shi, Kagoshima, 892-0833, Japan
MORITA TOYO CORPORATION
1700-2 Konjinzuka, Sanagu-cho, Iga-shi, Mie, 518-0001, JapanSHANGHAI JINDUN SPECIAL VEHICLE EQUIPMENT CO., LTD.
No.1515, Lizheng Road, Shuyuan Town, Pudong New Area,Shanghai, China, 201304
NANJING CHENGUANG MORITA ENVIRONMENT PROTECTIONSCIENCE & TECHNOLOGY CO., LTD
No. 188 Tianyuanzhong Road, Jiangning Economic & TechnicalDevelopment Zone, Nanjing, China, 211100
SICHUAN MORITA FIRE SAFETY APPLIANCES CO., LTD
No.8, Xinhua Avenue, Chengdu, Cross-Straits Technological,Industry Park, Wenjiang District, China, 611130
MORITA HOLDRICH (HONG KONG) COMPANY LIMITED
Rm.1911CC Wu Building, 302-8 Hennessy Rd., Wan Chai, Hong Kong
MORITA VIETNAM COMPANY LTD.
Minh Duc Commune, My Hao District, Hung Yen Province, Vietnam0901

M O R I TA R E P O R T 2 0 1 1

Shareholder s MemoIntroduction to the ShareBusiness Year

April 1st to March 31stAnnual General Meeting of Shareholders June
Reference date

Annual General Meeting of Shareholders March 31stYear-end Dividend March 31st
Interim Dividend September 30th
Other dates published in advance as necessary

Notification Method

Posted on company website
http://www.morita119.com/kohkoku/index.html

Administrator of the shareholders list
The Sumitomo Trust & Banking Co., Ltd.
4-5-33, Kitahama, Chuo-ku, Osaka-shi
Place of clerical office for the above
Stock Transfer Agency Department, The Sumitomo Trust & Banking Co., Ltd.
4-5-33, Kitahama, Chuo-ku, Osaka-shi（Postal Address）

Stock Transfer Agency Department, The Sumitomo Trust & Banking Co., Ltd.
1-10 Nikko-cho, Fuchu-shi, Tokyo 183-8701（Telephone Inquiries）+81-120-176-417（Internet Website URL）

http://www.sumitomotrust.co.jp/STA/retail/service/daiko/index.html

Stock Listing

Tokyo Stock Exchange, Osaka Securities Exchange[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository
Center, Inc.) before the share certificates were computerized, an account(special account) has been opened above Sumitomo Trust & banking Co.,
Ltd., the shareholder register administrator. For details regarding the specialaccount, notification of address change, and so on, please inquire with theabove contact.

[Notification of address change and inquiries]
For shareholders who have an account at a securities firm, please contact
the firm where your account is established for notification of address change
and so on. For shareholders who do not have an account at a securities firm,
please inquire with the above contact.

M O R I TA R E P O R T 2 0 1 1

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Please visit our website
for the latest investor relations information.
http://www.morita119.com

Online Storefor MORITA Original Goods

MORITA NETSHOP

http://morita119-netshop.com/

Osaka Head Oﬃce
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-8585, Tel. +81-6-6756-0100
Tokyo Head Oﬃce
3-25-31 Nishishinbashi, Minato-ku, Tokyo 105-0003, Tel. +81-3-5777-5777

http://www.morita119.com